State revenues up 20.5 percent in May

State revenue collections increased by 20.5 percent from May of last year, according to a report from the governor’s office today.

May is a significant month for revenue collections. On a year-to-date basis, total revenue collections rose 6.0 percent through May, ahead of the annual forecast of 3.6 percent growth. Adjusting for the accelerated tax program, total revenues have grown 5.7 percent, ahead of the adjusted forecast of 3.4 percent. To meet the state’s budget forecast, collection of $1.7 billion will be needed in the month of June. Last year, the Commonwealth collected $1.9 billion in the final month of the fiscal year.

The increase in May revenue was driven by a major increase in individual nonwithholding payments. These payments increased by 74.7 percent for the month, rising to $776.1 million, compared to $444.2 million last May. May is a very important month for individual nonwithholding payments as final payments for tax year 2012 and the first estimated payment for tax year 2013 are both due May 1. April is also an important month for individual nonwithholding as a number of final payments arrive during that period. Taken together, nonwithholding collections for April and May, the best way to look at the payments in totality, were up 30.7 percent over the same period last year.

In other areas, sales and use tax collections grew 2.7 percent for the month. Individual income tax withholding fell 1.8 percent.

The May revenue numbers are available at this link: http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2011-2012/2012ReportsList.cfm